AN ACT TO AMEND CHAPTER 83, TITLE 29, CHAPTERS 1, 11, 13, 19, 20, 23, 29, 51, 52, 54 AND 55, TITLE 30, CHAPTER 11 OF TITLE 5, CHAPTER 5 OF TITLE 8 AND CHAPTERS 7, 53, 55, 61, 63 AND 64 OF TITLE 18 OF THE DELAWARE CODE RELATING TO TAX PREFERENCES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Paragraph (6), §8305, Chapter 83, Title 29 of the Delaware Code by striking the words "On or before November 15, biennially", as they appear therein, and substitute in lieu thereof the words "Once every five years, on or before November 15,"

Section 2. Amend §8305, Chapter 83, Title 29 of the Delaware Code by adding thereto a new paragraph (7) to read as follows:

"(7) Notwithstanding the provisions of paragraph (6) of this Section, whenever there shall be enacted:

a. in the case of the personal income tax, a modification, as that term is used in §1105 of Title 30, to be used in determining taxable income, or adjustments to federal itemized deductions to be used in the computation contained in §1109(a), Title 30; or

a. in the case of corporation income tax, adjustments to federal taxable income under §1903(a), Title 30, or allocation provisions under §1903(b), Title 30; then, on or before November 15 following such enactment, the Division of Revenue, under the supervision of the Secretary of Finance, shall make a report to the Governor and the General Assembly concerning such provision. The report shall include the components described in paragraph (6)(b) of this Section."

Section 3. Amend §8305, Chapter 83, Title 29 of the Delaware Code by striking the first sentence of subparagraph b., paragraph (6) in its entirety, and substituting in lieu thereof, the following:

"The taxes to be reviewed in the report shall be tax preferences created under provisions of the Delaware Code, rather than tax preferences created by operation of the Internal Revenue Code of the United States, and shall include, but need not be limited to, the personal income tax, corporate income tax, motor fuel taxes and public utility taxes."

Section 4. Amend Chapter 1, Title 30 of the Delaware Code by adding thereto a new §105 to read as follows:

"§105. Sunset repeal of tax preferences.

The following Delaware tax preference sections, subsections, and/or paragraphs of the Delaware Code or successor provisions shall be repealed, or, where so indicated, amended for tax periods beginning after December 31, 1995 and each fifth January 1 commencing January 1, 2001, unless continued, extended, or reenacted by act of the General Assembly without any amendment that would increase or decrease the amount or application of the preference:

interest income (including discount) arising from obligations representing advances, loans or contractual transactions between corporations which are eligible to file a consolidated return for federal income tax purposes and which are subject to taxation under this chapter, if the paying corporation eliminates such interest (including discount) in determining its entire net income');

(1) Realty Transfer Tax Exemption Of Conveyances To Or From A Volunteer Fire Company

30 De, C, §5401(1)r;

(1) Realty Transfer Tax Exemption Of Conveyances With Value Of Less Than $100

30 Del. C, §5402(b);

(51) Realty Transfer Tax Conveyance Of Mobile Homes

30 De, D, §5401(1)s;

(52) Realty Transfer Tax Conveyances To Charitable Organizations

30 De, D, §5401(1)t;

(53) Corporate Franchise Tax Ceiling

8 De, D, §503(c) (Amend by striking the phrase more than $130,000, nor');

(54) Franchise Tax Exempt Corporations

8 Del. D.,. §501 (Amend by striking the phrase or any

corporation for drainage and reclamation of lowlands, or religious corporation, or purely charitable or educational association, or any company, association or society, which, by its certificate of incorporation, shall have for its object the assistance of the sick, needy or disabled members, or the defraying of funeral expenses of deceased members, or to provide for the wants of the widows and families after death of its members.');

(1) Insurance Tax Exclusion Of Considerations Received For Annuity Contracts

18 De]. c, §702(a)

(Amend by striking the last sentence of said subsection.)."

Section 5. This Act shall be effective upon enactment into law. The first report under Section 1 of this act shall be due on or before November 15, 1994. The first report under Section 2 of this act shall be due on or before November 15, 1991, with regard to enactments after January 1, 1990.